Favreau started developing Gnomes & Goblins with Jones and Jake Rowell, who directed theBlue. In the game, the player enters a magical forest, alight with fireflies and glowing candles, where tiny gnomes cautiously emerge from behind trees to interact–as they grow more comfortable with the player, they become more emboldened and start picking up and tossing fallen peaches (which the player can also pick up). Madison Wells became involved in the project through its partnership with Wevr, which came about after Kisker saw theBlue. “My first thought was, who did this? I need to find the people who did this because if they can do this with this circumstance then what else can they do?”

“Sony Pictures will expand our efforts to develop new audiences and new revenue from our studio’s content, leverage longstanding relationships with some of the best creative minds in the business and explore exciting opportunities for high-quality, interactive storytelling in this new medium,” Jake Zim, senior VP, virtual reality at Sony Pictures, said Tuesday in a statement about the deal.